Ceragon Networks (CRNT) grows Q2 2026 revenue 14% but posts GAAP loss
Rhea-AI Filing Summary
Ceragon Networks reported Q2 2026 results showing higher sales but weaker profitability. Revenues were $93.9 million, up 14.2% from $82.3 million in Q2 2025, driven largely by India, which represented 48% of quarterly revenue. North America contributed 22%, with the balance from EMEA, Latin America, and APAC.
GAAP gross margin was 31.7%, down from 34.6% a year earlier, reflecting cost and supply-chain pressures. GAAP operating income was $0.2 million versus $2.2 million, and Ceragon posted a GAAP net loss of $2.1 million, or $0.02 per diluted share, compared with a $1.3 million loss, or $0.01 per share, in Q2 2025. On a non-GAAP basis, operating income was $4.0 million and net income was $1.7 million, or $0.02 per diluted share.
Cash flow from operations was $5.1 million in Q2 2026. Cash and cash equivalents were $34.8 million as of June 30, 2026, compared with $38.4 million at December 31, 2025. Short-term loans declined to $12.0 million from $19.0 million, while total shareholders’ equity was $172.1 million. Management highlighted strong demand, particularly for E-band and 5G FR2 solutions, and reiterated confidence in its long-term growth prospects.
Positive
- Revenue grew 14.2% year over year to $93.9 million, indicating solid demand, especially in India, which contributed 48% of quarterly sales.
- Non-GAAP net income was $1.7 million and operating cash flow was $5.1 million, showing the core business generated positive earnings and cash despite GAAP losses.
- Short-term loans decreased to $12.0 million from $19.0 million since year-end 2025, reducing near-term debt obligations.
Negative
- GAAP net loss widened to $2.1 million from $1.3 million year over year, with loss per diluted share at $0.02 versus $0.01.
- GAAP gross margin declined to 31.7% from 34.6%, signaling margin pressure from costs or pricing even as revenue increased.
- Non-GAAP operating income fell to $4.0 million from $4.7 million and non-GAAP net income declined versus Q2 2025, indicating lower underlying profitability.
Filing Explained
As a Form 6-K, this filing furnishes interim information and reports Ceragon Networks’ Q2 2026 results for the period ended
Key Figures
Q2 2026 Revenue: $93,914 thousand
Q2 2026 GAAP Gross Margin: 31.7%
Q2 2026 GAAP Net Loss: $2,091 thousand
+5 more
8 metrics
Q2 2026 Revenue
$93,914 thousand
Three months ended June 30, 2026; up from $82,262 thousand in Q2 2025
Q2 2026 GAAP Gross Margin
31.7%
GAAP gross profit of $29,727 thousand on revenue of $93,914 thousand
Q2 2026 GAAP Net Loss
$2,091 thousand
Net loss for the three months ended June 30, 2026; $0.02 per diluted share
Q2 2026 Non-GAAP Net Income
$1,709 thousand
Non-GAAP net income for the three months ended June 30, 2026; $0.02 diluted EPS
Operating Cash Flow Q2 2026
$5,066 thousand
Net cash provided by operating activities for the three months ended June 30, 2026
Cash and Cash Equivalents
$34,771 thousand
Balance as of June 30, 2026; compared to $38,368 thousand at December 31, 2025
Short-Term Loans
$12,004 thousand
Short-term loans as of June 30, 2026; down from $19,000 thousand at December 31, 2025
India Revenue Share Q2 2026
48%
Share of total revenue by geography for the three months ended June 30, 2026
Key Terms
Non-GAAP, E-band solutions, 5G FR2 (mmWave), right-of-use assets, +1 more
5 terms
Non-GAAP financial
"Non-GAAP results were as follows: Gross margin was 32.2%, operating profit was $4.0 million"
Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.
E-band solutions technical
"Our E-band solutions are generating particular interest from customers and represent a strong competitive differentiator."
5G FR2 (mmWave) technical
"Our recent field trial success with our 5G FR2 (mmWave) product for a new Tier 1 North American carrier"
right-of-use assets financial
"Operating lease right-of-use assets | | | 16,003 | | | | 16,554"
Right-of-use assets are the rights a company gains to use a physical space or equipment under a lease agreement. They are recorded as assets on the company's balance sheet, reflecting the value of future benefits from the leased item. For investors, these assets provide a clearer picture of a company's obligations and resources related to leasing arrangements, helping to assess its financial health and operational commitments.
Earnings Snapshot
Revenue: $93,914 thousand
Three months ended June 30, 2026
Revenue
$93,914 thousand
$93,914 thousand vs $82,262 thousand in Q2 2025
GAAP Net Income (Loss)
$(2,091) thousand
$(2,091) thousand vs $(1,267) thousand in Q2 2025
Non-GAAP Net Income
$1,709 thousand
$1,709 thousand vs $2,454 thousand in Q2 2025
GAAP Diluted EPS
$(0.02)
$(0.02) vs $(0.01) in Q2 2025
Non-GAAP Diluted EPS
$0.02
$0.02 vs $0.03 in Q2 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did Ceragon Networks (CRNT) perform financially in Q2 2026?
Ceragon reported Q2 2026 revenue of $93.9 million, up 14.2% year over year, with a GAAP net loss of $2.1 million. On a non-GAAP basis, net income was $1.7 million, reflecting positive underlying earnings despite GAAP losses.
What were Ceragon Networks’ (CRNT) profit margins in Q2 2026?
Ceragon posted a GAAP gross margin of 31.7% in Q2 2026, down from 34.6% a year earlier. Non-GAAP gross margin was 32.2%. GAAP operating income was $0.2 million, while non-GAAP operating income reached $4.0 million.
What was Ceragon Networks’ (CRNT) geographic revenue mix in Q2 2026?
In Q2 2026, Ceragon’s revenue mix was led by India at 48%, followed by North America at 22%. EMEA contributed 13%, Latin America 9%, and APAC 8%, underscoring India’s central role in the company’s current growth.
What is Ceragon Networks’ (CRNT) cash and debt position as of June 30, 2026?
As of June 30, 2026, Ceragon held $34.8 million in cash and cash equivalents and reported $12.0 million in short-term loans. Total shareholders’ equity stood at $172.1 million, with total assets of $313.8 million.
Did Ceragon Networks (CRNT) generate positive cash flow in Q2 2026?
Yes. Ceragon generated $5.1 million in cash flow from operating activities during Q2 2026. After investing and financing cash flows, cash and cash equivalents ended the quarter at $34.8 million, down from $38.4 million at year-end 2025.
How did Ceragon Networks’ (CRNT) non-GAAP results compare to GAAP in Q2 2026?
On a GAAP basis, Ceragon reported a net loss of $2.1 million. Excluding items such as stock-based compensation, amortization, restructuring, and acquisition-related charges, non-GAAP net income was $1.7 million and non-GAAP diluted EPS was $0.02.
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Washington, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR
15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of August 2026
Commission File Number: 0-30862
|
CERAGON NETWORKS LTD.
 (Translation of registrant’s name into English)
|
|
3 Uri Ariav st., Rosh Ha’Ayin, Israel, 4810002
(Address of principal executive offices)
|
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
This Form 6-K, including all exhibits hereto, is hereby incorporated by reference into all effective registration
statements filed by the registrant under the Securities Act of 1933.
|
|
CERAGON NETWORKS LTD.
|
|
Date: August 11, 2026
|
By: /s/ Ronen Stein
|
|
|
Name: Ronen Stein
Title: Chief Financial Officer |
2
|
Exhibit
|
Description
|
|
Exhibit A –
|
Ceragon
Reports 2026 Second Quarter Financial Results
|
3
Exhibit A
Ceragon Reports 2026 Second Quarter Financial Results
Strong demand in India drives 14% year-over-year revenue growth
Rosh Ha'ain, Israel, August 11, 2026 -- Ceragon (NASDAQ: CRNT), a leading solutions provider of end-to-end wireless connectivity, today
reported its financial results for the second quarter period ended June 30, 2026.
Q2 2026 Financial Highlights:
| • |
Revenues of $93.9 million
|
| • |
GAAP Operating income of $0.2 million, non-GAAP operating income of $4.0 million
|
| • |
GAAP Net loss of $2.1 million, non-GAAP net income of $1.7 million
|
| • |
GAAP EPS of ($0.02) per diluted share, non-GAAP EPS of $0.02 per diluted share
|
Q2 2026 Business Highlights:
| • |
India – Sequentially higher revenue and strong bookings
(approximately $120 million in announced year-to-date bookings in July) have increased visibility for the remainder of 2026; notable interest in E-band solutions
|
| • |
North America – Demand remained robust with record quarterly bookings in private networks
|
CEO Doron Arazi commented: “Our second quarter
reflects the benefits of the strategy we've been executing over the past several years. Demand remains healthy across multiple end markets, and we're seeing momentum from both our traditional carrier business and newer growth areas such as private
networks and managed services. Just as importantly, the quality of our opportunities and customer engagement, gives us confidence in the outlook for the balance of the year, as described below."
“Customer demand remains healthy, and our
competitive position continues to improve, despite near-term industry-wide cost and supply chain pressures,” continued Mr. Arazi. “Our E-band solutions are generating particular interest from customers and represent a strong competitive
differentiator. Our recent field trial success with our 5G FR2 (mmWave) product for a new Tier 1 North American carrier points to our continued innovation that drives increased demand for our technology. Strong bookings and growing interest from
new and existing customers reinforce our confidence in Ceragon’s technology, innovation roadmap, and long-term growth prospects.”
Primary Second Quarter 2026 Financial Results:
Revenues were $93.9 million, up 14.2% from $82.3 million in Q2 2025.
Gross profit was $29.7 million,
or a gross margin of 31.7%, compared to gross margin of 34.6% in Q2 2025.
GAAP Operating income was $0.2 million compared with $2.2 million for Q2 2025.
GAAP Net income (loss) was
($2.1) million, or ($0.02) per diluted share, compared with ($1.3) million, or ($0.01) per diluted share for Q2 2025.
Non-GAAP results were as follows: Gross margin was 32.2%, operating profit was $4.0 million, and net income was $1.7 million, or $0.02 per diluted share.
Balance Sheet
Cash and cash equivalents were
$34.8 million on June 30, 2026, compared to $38.4 million on December 31, 2025.
For a reconciliation of GAAP to non-GAAP results, see the attached tables.
Revenue Breakout by Geography:
|
Q2 2026
|
|
|
India
|
48%
|
|
North America
|
22%
|
|
EMEA
|
13%
|
|
Latin America
|
9%
|
|
APAC
|
8%
|
Outlook
Management updated its 2026 outlook as follows:
| • |
Revenue of $355 million to $385 million
|
| • |
Non-GAAP gross margin is expected to be between 33.5% - 34.5% vs. 35.5% previously at the midpoint of the provided revenue guidance range
|
| • |
Non-GAAP operating margin is expected to be between 5% - 6% vs. 6.5% - 7.5% previously at the midpoint of the provided revenue guidance range.
|
Conference Call
The Company will hold a Zoom webcast today at 8:30 a.m. ET to review the results, followed by a Q&A session.
Investors are invited to register by clicking here.
All relevant access details will be provided upon registration.
For investors unable to join the live call, a replay will be available on the Company’s website at www.ceragon.com
About Ceragon
Ceragon (NASDAQ: CRNT) is the global innovator and leading solutions provider of end-to-end wireless connectivity, specializing in
transport, access, and AI-powered managed & professional services. Through our commitment to excellence, we empower customers to elevate operational efficiency and enrich the quality of experience for their end users.
Our customers include service providers, utilities, public safety organizations, government agencies, energy companies, and more who
rely on our wireless expertise and cutting-edge solutions for 5G & 4G broadband wireless connectivity, mission-critical services, and an array of applications that harness our ultra-high reliability and speed. Ceragon solutions are deployed by
more than 600 service providers, as well as more than 1,600 private network owners, in more than 130 countries. Through our innovative, end-to-end solutions, covering hardware, software, and managed & professional services, we enable our
customers to embrace the future of wireless technology with confidence, shaping the next generation of connectivity and service delivery. Ceragon delivers extremely reliable, fast-to-deploy, high-capacity wireless solutions for a wide range of
communication network use cases, optimized to lower TCO through minimal use of spectrum, power, real estate, and labor resources – driving simple, quick, and cost-effective network modernization and positioning Ceragon as a leading solutions provider
for the “connectivity everywhere” era.
For more information please visit: www.ceragon.com
Ceragon Networks® and FibeAir® are registered trademarks of Ceragon Networks Ltd. in the United States and other countries. CERAGON ® is a
trademark of Ceragon, registered in various countries. Other names mentioned are owned by their respective holders.
Safe Harbor
This press release contains statements that constitute “forward-looking statements” within the meaning of the
Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current beliefs,
expectations and assumptions of Ceragon’s management about Ceragon’s business, financial condition, results of operations, micro and macro market trends and other issues addressed or reflected therein. Examples of forward-looking statements include,
but are not limited to, statements regarding: projections of demand, revenues, net income, gross margin, capital expenditures and liquidity, competitive pressures, order timing, supply chain and shipping, components availability; growth prospects,
product development, financial resources, cost savings and other financial and market matters. You may identify these and other forward-looking statements by the use of words such as "may", "plans", "anticipates", "believes", "estimates", "targets",
"expects", "intends", "potential" or the negative of such terms, or other comparable terminology, although not all forward-looking statements contain these identifying words.
Although we believe that the projections reflected in such forward-looking statements are based upon reasonable
assumptions, we can give no assurance that our expectations will be obtained or that any deviations there from will not be material. Such forward-looking statements involve known and unknown risks and uncertainties that may cause Ceragon’s future
results or performance to differ materially from those anticipated, expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: Company's forward-looking forecasts, with respect to which
there is no assurance that such forecasts will materialize; Company's ability to future plan, business, marketing and product strategies on the forecasted evolution of the market developments, such as market and territory trends, future use cases,
business concepts, technologies, future demand, and necessary inventory levels; the effects of fluctuations in currency exchange rates between the currencies in which we operate; risks relating to the conversion of the orders from customers into
revenues; the effects of global economic trends, including recession, rising inflation, rising interest rates, commodity price increases and fluctuations, commodity shortages and exposure to economic slowdown; risks related to conditions in Israel
and the continuation of hostilities in the Middle East; risks associated with delays in the transition to 5G technologies and in the 5G rollout; risks relating to the concentration of our business on a limited number of large mobile operators and the
fact that the significant weight of their ordering, compared to the overall ordering by other customers, coupled with inconsistent ordering patterns, could negatively affect us; risks resulting from the volatility in our revenues, margins and working
capital needs; disagreements with tax authorities regarding tax positions that we have taken could result in increased tax liabilities; the high volatility in the supply needs of our customers, which from time to time lead to delivery issues and may
lead to us being unable to timely fulfil our customer commitments; and such other risks, uncertainties and other factors that could affect our results of operations, as further detailed in Ceragon’s most recent Annual Report on Form 20-F, as
published on April 15, 2026, as well as other documents that may be subsequently filed by Ceragon from time to time with the Securities and Exchange Commission.
We caution you not to place undue reliance on forward-looking statements, which speak only as of the date hereof.
Ceragon does not assume any obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release unless required by law.
While we believe that we have a reasonable basis for each forward-looking statement contained in this press release,
we caution you that these statements are based on a combination of facts and factors currently known by us and our projections on the future, about which we cannot be certain. In addition, any forward-looking statements represent Ceragon’s views only
as of the date of this press release and should not be relied upon as representing its views as of any subsequent date. Ceragon does not assume any obligation to update any forward-looking statements unless required by law.
The results reported in this press-release are preliminary and unaudited results, and investors should be aware of
possible discrepancies between these results and the audited results to be reported, due to various factors.
Ceragon’s public filings are available
on the Securities and Exchange Commission’s website at www.sec.gov and
may also be obtained from Ceragon’s website at www.ceragon.com.
Investor Contact:
Rob Fink
FNK IR
Tel. +1-646-809-4048
crnt@fnkir.com
Joey Delahoussaye
FNK IR
Tel. +1-312-809-1087
crnt@fnkir.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(U.S. dollars in thousands, except share and per share data)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Revenues
|
93,914
|
82,262
|
178,917
|
170,914
|
||||||||||||
|
Cost of revenues
|
64,187
|
53,822
|
119,114
|
113,375
|
||||||||||||
|
Gross profit
|
29,727
|
28,440
|
59,803
|
57,539
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
Research and development, net
|
8,405
|
7,332
|
16,346
|
15,581
|
||||||||||||
|
Sales and Marketing
|
12,909
|
11,722
|
26,899
|
24,019
|
||||||||||||
|
General and administrative
|
6,823
|
6,940
|
12,343
|
12,376
|
||||||||||||
|
Restructuring and related charges
|
1,120
|
-
|
1,660
|
3,732
|
||||||||||||
|
Acquisition- and integration-related charges
|
233
|
229
|
233
|
704
|
||||||||||||
|
Total operating expenses
|
29,490
|
26,223
|
57,481
|
56,412
|
||||||||||||
|
Operating income
|
237
|
2,217
|
2,322
|
1,127
|
||||||||||||
|
Financial and other expenses, net
|
1,663
|
2,896
|
4,519
|
1,906
|
||||||||||||
|
Income (loss) before taxes
|
(1,426
|
)
|
(679
|
)
|
(2,197
|
)
|
(779
|
)
|
||||||||
|
Taxes on income
|
665
|
588
|
1,237
|
1,468
|
||||||||||||
|
Net income (loss)
|
(2,091
|
)
|
(1,267
|
)
|
(3,434
|
)
|
(2,247
|
)
|
||||||||
|
Basic net income (loss) per share
|
(0.02
|
)
|
(0.01
|
)
|
(0.04
|
)
|
(0.03
|
)
|
||||||||
|
Diluted net income (loss) per share
|
(0.02
|
)
|
(0.01
|
)
|
(0.04
|
)
|
(0.03
|
)
|
||||||||
|
Weighted average number of shares used in computing basic net income (loss) per share
|
91,033,749
|
89,470,719
|
90,872,376
|
89,108,772
|
||||||||||||
|
Weighted average number of shares used in computing diluted net income (loss) per share
|
91,033,749
|
89,470,719
|
90,872,376
|
89,108,772
|
||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands)
|
June 30,
|
December 31,
|
|||||||
|
2026
|
2025
|
|||||||
|
ASSETS
|
||||||||
|
CURRENT ASSETS:
|
||||||||
|
Cash and cash equivalents
|
34,771
|
38,368
|
||||||
|
Trade receivables, net
|
101,283
|
99,673
|
||||||
|
Inventories
|
59,459
|
61,587
|
||||||
|
Other accounts receivable and prepaid expenses
|
24,564
|
25,576
|
||||||
|
Total current assets
|
220,077
|
225,204
|
||||||
|
NON-CURRENT ASSETS:
|
||||||||
|
Severance pay and pension fund
|
430
|
362
|
||||||
|
Property and equipment, net
|
41,065
|
39,952
|
||||||
|
Operating lease right-of-use assets
|
16,003
|
16,554
|
||||||
|
Intangible assets, net
|
24,525
|
23,182
|
||||||
|
Goodwill
|
11,007
|
11,007
|
||||||
|
Other non-current assets
|
669
|
781
|
||||||
|
Total non-current
assets
|
93,699
|
91,838
|
||||||
|
Total assets
|
313,776
|
317,042
|
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
|
CURRENT LIABILITIES:
|
||||||||
|
Trade payables
|
74,173
|
70,784
|
||||||
|
Deferred revenues
|
1,300
|
2,371
|
||||||
|
Short-term loans
|
12,004
|
19,000
|
||||||
|
Operating lease liabilities
|
4,061
|
4,001
|
||||||
|
Other accounts payable and accrued expenses
|
27,251
|
24,071
|
||||||
|
Total current
liabilities
|
118,789
|
120,227
|
||||||
|
LONG-TERM LIABILITIES:
|
||||||||
|
Accrued severance pay and pension
|
2,557
|
2,537
|
||||||
|
Operating lease liabilities
|
12,715
|
13,331
|
||||||
|
Other long-term payables
|
7,665
|
8,195
|
||||||
|
Total long-term
liabilities
|
22,937
|
24,063
|
||||||
|
SHAREHOLDERS' EQUITY:
|
||||||||
|
Share capital
|
234
|
234
|
||||||
|
Additional paid-in capital
|
457,690
|
454,640
|
||||||
|
Treasury shares at cost
|
(20,091
|
)
|
(20,091
|
)
|
||||
|
Accumulated other comprehensive loss
|
(9,134
|
)
|
(8,816
|
)
|
||||
|
Accumulated deficit
|
(256,649
|
)
|
(253,215
|
)
|
||||
|
Total shareholders'
equity
|
172,050
|
172,752
|
||||||
|
Total liabilities and
shareholders' equity
|
313,776
|
317,042
|
||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(U.S. dollars, in thousands)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
Cash flow from operating activities:
|
||||||||||||||||
|
Net income (loss)
|
(2,091
|
)
|
(1,267
|
)
|
(3,434
|
)
|
(2,247
|
)
|
||||||||
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||||||||||
|
Depreciation and amortization
|
3,471
|
3,632
|
6,905
|
6,964
|
||||||||||||
|
Loss from sale of property and equipment, net
|
52
|
-
|
122
|
10
|
||||||||||||
|
Stock-based compensation expense
|
1,755
|
1,549
|
2,647
|
2,199
|
||||||||||||
|
Decrease (increase) in accrued severance pay and pensions, net
|
(85
|
)
|
30
|
(48
|
)
|
77
|
||||||||||
|
Decrease (increase) in trade receivables, net
|
(6,838
|
)
|
21,778
|
(1,537
|
)
|
28,162
|
||||||||||
|
Decrease (increase) in other assets (including other accounts receivable,
prepaid expenses, other non-current assets, and the effect of exchange
rate changes on cash and cash equivalents)
|
(461
|
)
|
(1,179
|
)
|
755
|
(2,319
|
)
|
|||||||||
|
Decrease (increase) in inventory
|
(2,269
|
)
|
2,206
|
1,561
|
127
|
|||||||||||
|
Decrease in operating lease right-of-use assets
|
1,182
|
1,323
|
2,135
|
2,054
|
||||||||||||
|
Increase (decrease) in trade payables
|
9,255
|
(13,961
|
)
|
3,081
|
(18,045
|
)
|
||||||||||
|
Increase (decrease) in other accounts payable and accrued expenses (including other long-term payables)
|
3,666
|
(3,285
|
)
|
2,620
|
(2,531
|
)
|
||||||||||
|
Decrease in operating lease liability
|
(1,161
|
)
|
(90
|
)
|
(2,140
|
)
|
(915
|
)
|
||||||||
|
Increase (decrease) in deferred revenues
|
(1,410
|
)
|
26
|
(1,071
|
)
|
(164
|
)
|
|||||||||
|
Net cash provided by operating activities
|
5,066
|
10,762
|
11,596
|
13,372
|
||||||||||||
|
Cash flow from investing activities:
|
||||||||||||||||
|
Purchases of property and equipment
|
(3,322
|
)
|
(3,957
|
)
|
(5,597
|
)
|
(7,426
|
)
|
||||||||
|
Software development costs capitalized
|
(1,451
|
)
|
(1,173
|
)
|
(2,921
|
)
|
(1,711
|
)
|
||||||||
|
Payments made in connection with business acquisitions, net of acquired cash
|
-
|
-
|
-
|
(6,570
|
)
|
|||||||||||
|
Net cash used in investing activities
|
(4,773
|
)
|
(5,130
|
)
|
(8,518
|
)
|
(15,707
|
)
|
||||||||
|
Cash flow from financing activities:
|
||||||||||||||||
|
Proceeds from exercise of stock options
|
267
|
143
|
276
|
651
|
||||||||||||
|
Repayments of bank credits and loans, net
|
(5,096
|
)
|
(4,700
|
)
|
(6,996
|
)
|
(4,700
|
)
|
||||||||
|
Net cash used in financing activities
|
(4,829
|
)
|
(4,557
|
)
|
(6,720
|
)
|
(4,049
|
)
|
||||||||
|
Effect of exchange rate changes on cash and cash equivalents
|
143
|
453
|
45
|
289
|
||||||||||||
|
Increase (decrease) in cash and cash equivalents
|
(4,393
|
)
|
1,528
|
(3,597
|
)
|
(6,095
|
)
|
|||||||||
|
Cash and cash equivalents at the beginning of the period
|
39,164
|
27,688
|
38,368
|
35,311
|
||||||||||||
|
Cash and cash equivalents at the end of the period
|
34,771
|
29,216
|
34,771
|
29,216
|
||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
GAAP cost of revenues
|
64,187
|
53,822
|
119,114
|
113,375
|
||||||||||||
|
Stock-based compensation expenses
|
(108
|
)
|
(81
|
)
|
(239
|
)
|
(189
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(422
|
)
|
(451
|
)
|
(844
|
)
|
(956
|
)
|
||||||||
|
Non-GAAP cost of revenues
|
63,657
|
53,290
|
118,031
|
112,230
|
||||||||||||
|
GAAP gross profit
|
29,727
|
28,440
|
59,803
|
57,539
|
||||||||||||
|
Stock-based compensation expenses
|
108
|
81
|
239
|
189
|
||||||||||||
|
Amortization of acquired intangible assets
|
422
|
451
|
844
|
956
|
||||||||||||
|
Non-GAAP gross profit
|
30,257
|
28,972
|
60,886
|
58,684
|
||||||||||||
|
GAAP Research and development expenses
|
8,405
|
7,332
|
16,346
|
15,581
|
||||||||||||
|
Stock-based compensation expenses
|
(217
|
)
|
(123
|
)
|
(408
|
)
|
(278
|
)
|
||||||||
|
Non-GAAP Research and development expenses
|
8,188
|
7,209
|
15,938
|
15,303
|
||||||||||||
|
GAAP Sales and marketing expenses
|
12,909
|
11,722
|
26,899
|
24,019
|
||||||||||||
|
Stock-based compensation expenses
|
(350
|
)
|
(330
|
)
|
(690
|
)
|
(640
|
)
|
||||||||
|
Amortization of acquired intangible assets
|
(220
|
)
|
(275
|
)
|
(440
|
)
|
(497
|
)
|
||||||||
|
Non-GAAP Sales and marketing expenses
|
12,339
|
11,117
|
25,769
|
22,882
|
||||||||||||
|
GAAP General and administrative expenses
|
6,823
|
6,940
|
12,343
|
12,376
|
||||||||||||
|
Stock-based compensation expenses
|
(1,080
|
)
|
(1,015
|
)
|
(1,310
|
)
|
(1,092
|
)
|
||||||||
|
Non-GAAP General and administrative expenses
|
5,743
|
5,925
|
11,033
|
11,284
|
||||||||||||
|
GAAP Restructuring and related charges
|
1,120
|
-
|
1,660
|
3,732
|
||||||||||||
|
Restructuring and related charges
|
(1,120
|
)
|
-
|
(1,660
|
)
|
(3,732
|
)
|
|||||||||
|
Non-GAAP Restructuring and related charges
|
-
|
-
|
-
|
-
|
||||||||||||
|
GAAP Acquisition- and integration-related charges
|
233
|
229
|
233
|
704
|
||||||||||||
|
Acquisition- and integration-related charges
|
(233
|
)
|
(229
|
)
|
(233
|
)
|
(704
|
)
|
||||||||
|
Non-GAAP Acquisition- and integration-related charges
|
-
|
-
|
-
|
-
|
||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL RESULTS
(U.S. dollars in thousands, except share and per share data)
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
|
2026
|
2025
|
2026
|
2025
|
|||||||||||||
|
GAAP Operating income
|
237
|
2,217
|
2,322
|
1,127
|
||||||||||||
|
Stock-based compensation expenses
|
1,755
|
1,549
|
2,647
|
2,199
|
||||||||||||
|
Amortization of acquired intangible assets
|
642
|
726
|
1,284
|
1,453
|
||||||||||||
|
Restructuring and related charges
|
1,120
|
-
|
1,660
|
3,732
|
||||||||||||
|
Acquisition- and integration-related charges
|
233
|
229
|
233
|
704
|
||||||||||||
|
Non-GAAP Operating income
|
3,987
|
4,721
|
8,146
|
9,215
|
||||||||||||
|
GAAP Financial and other expenses, net
|
1,663
|
2,896
|
4,519
|
1,906
|
||||||||||||
|
Leases – financial income (expenses)
|
(22
|
)
|
(1,233
|
)
|
4
|
(1,138
|
)
|
|||||||||
|
Non-cash revaluation associated with business combination
|
(28
|
)
|
16
|
(37
|
)
|
1,948
|
||||||||||
|
Non-GAAP Financial and other expenses, net
|
1,613
|
1,679
|
4,486
|
2,716
|
||||||||||||
|
GAAP Tax expenses
|
665
|
588
|
1,237
|
1,468
|
||||||||||||
|
Non-GAAP Tax expenses
|
665
|
588
|
1,237
|
1,468
|
||||||||||||
|
GAAP Net income (loss)
|
(2,091
|
)
|
(1,267
|
)
|
(3,434
|
)
|
(2,247
|
)
|
||||||||
|
Stock-based compensation expenses
|
1,755
|
1,549
|
2,647
|
2,199
|
||||||||||||
|
Amortization of acquired intangible assets
|
642
|
726
|
1,284
|
1,453
|
||||||||||||
|
Restructuring and related charges
|
1,120
|
-
|
1,660
|
3,732
|
||||||||||||
|
Acquisition- and integration-related charges
|
233
|
229
|
233
|
704
|
||||||||||||
|
Leases – financial expenses (income)
|
22
|
1,233
|
(4
|
)
|
1,138
|
|||||||||||
|
Non-cash revaluation associated with business combination
|
28
|
(16
|
)
|
37
|
(1,948
|
)
|
||||||||||
|
Non-GAAP Net income
|
1,709
|
2,454
|
2,423
|
5,031
|
||||||||||||
|
GAAP basic net income (loss) per share
|
(0.02
|
)
|
(0.01
|
)
|
(0.04
|
)
|
(0.03
|
)
|
||||||||
|
GAAP diluted net income (loss) per share
|
(0.02
|
)
|
(0.01
|
)
|
(0.04
|
)
|
(0.03
|
)
|
||||||||
|
Non-GAAP Diluted net income per share
|
0.02
|
0.03
|
0.03
|
0.06
|
||||||||||||
|
Weighted average number of shares used in computing GAAP basic net income (loss) per share
|
91,033,749
|
89,470,719
|
90,872,376
|
89,108,772
|
||||||||||||
|
Weighted average number of shares used in computing GAAP diluted net income (loss) per share
|
91,033,749
|
89,470,719
|
90,872,376
|
89,108,772
|
||||||||||||
|
Weighted average number of shares used in computing Non-GAAP diluted net income per share
|
93,529,521
|
91,245,422
|
93,120,527
|
91,381,985
|
||||||||||||